Gov't to rescue media houses as ad revenue plummets - PS Isaboke

The government is considering urgent measures to support Kenya’s struggling media houses, amid growing concerns over financial sustainability in the industry.

Speaking during the Annual Journalism Excellence Awards (AJEA) in Nairobi on Friday evening, the Principal Secretary for the State Department for Broadcasting and Telecommunications in the Ministry of ICT and the Digital Economy, Stephen Isaboke, said the government is exploring ways to cushion media outlets, some of which are on the brink of collapse due to a sharp drop in advertising revenue.

“We are looking into ways of keeping media houses afloat in these hard economic times. One key strategy is addressing pending bills owed to media outlets for government advertisements,” said PS Isaboke.

The PS revealed that the government is considering settling millions of shillings in unpaid advertisement revenue owed to media houses through the Government Advertising Agency (GAA). As of early 2023, the government confirmed it owed Sh332.3 million specifically for circulation of the MyGov publication.

However, the Media Owners Association estimates the total debt at Sh1.2 billion, factoring in unpaid services across TV, radio, and digital platforms.

One of the biggest casualties of these delays is the Standard Media Group, which is reportedly owed Sh73.93 million.

The company has suffered a Sh1.26 billion net loss for the financial year ending December 2023, following a decline in revenue by 13 percent to Sh2.4 billion. The company attributes the downturn to reduced advertising spend, rising operational costs, and delayed government payments.

In August 2024, Standard Media Group announced a redundancy plan targeting over 300 employees, while in July, a group of radio presenters staged a walkout over delayed salaries, highlighting the depth of the crisis.

To stabilise operations, the company’s shareholders approved a Sh1.5 billion rights issue in September 2024 aimed at strengthening the balance sheet and pivoting toward digital growth.

PS Isaboke praised the resilience and global reputation of Kenyan journalism, noting that the country continues to lead in media excellence on the continent. He further disclosed that Kenya will next week bid to host the Global Africa Media Conference during a high-level meeting in Morocco, competing against Ethiopia.

“We believe Kenya’s robust media sector and democratic foundations make it the ideal host for this important continental gathering,” he said.

Meanwhile, Kenya Revenue Authority (KRA) Board Chairman Ndiritu Muriithi, who also spoke at the AJEA event, cautioned journalists against the misuse of digital platforms, especially in an era of rampant misinformation.

“We are professionals, and we bear the burden of guiding the public toward truthful information. Social media is flooded with unverified content. It is your duty to sift through and avoid becoming conveyors of fake news,” Mr Muriithi emphasized.

The AJEA, organised by the Media Council of Kenya (MCK), brought together media practitioners, editors, policymakers, and civil society stakeholders to recognize outstanding journalistic work and reflect on the future of the profession.

Here-below are the winners from Nation Media Group (NMG).

1. Journalist of the year - Brygettes Ngana

2. Cameraman of the year - Sam Doe

3. Photojournalist of the year - Sila Kiplagat

4. Best television production award - Smriti Vidyarthi

5. Lifetime Achievement Award - Francis Mutegi

6. Agriculture and food security award - Ibrahim Karanja

7. Environment restoration, blue economy and climate reporting award - Lillys Njeru

8. Gender and Inclusivity reporting award - Angela Oketch

9. Governance and Development Reporting Award - Rose Wangui

10. Health and Substance abuse reporting award - Brygettes Ngana